03.05.2011 - Australia is becoming caught up in a property trap: Gottliebsen

The widespread fall in Australian house prices during the March quarter is healthy. The danger lies in what might happen next. The decline will make overseas investors in our sharemarket nervous because many analysts overseas regard the Australian housing market as simply way out of line with the rest of the world. Some say it is a bubble ready to burst.
The downturn was a clear response to two forces. The first was that during the March quarter banks started to tighten their lending criteria, partly to reflect higher interest rates..............................................Full Article: Source